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India Equity Research Reports, IPO and Stock News
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http://content.icicidirect.com/mailimages/ICICIdirect_EarningsWrap_Q3FY12.pdf
E B I T D A m a r g i n c o n t r a c t i o n y e t a g a i n …
• The Q3FY12 aggregate revenues of Sensex companies rose by
7% in continuation with last quarters’ trend. However, the EBITDA
margin has continued its slide for the fourth consecutive quarter.
On a QoQ basis, the EBITDA margin declined by 140 bps to
18.4%. This led to flattish EBITDA in spite of revenue growth.
Though the interest expense has remained flattish, interest
expenditure as a percentage of EBITDA at 7.5% is at its highest
level in the last eight quarters. A 57% QoQ increase in other
income has enabled the aggregate net profit to report a QoQ rise
of 4% to | 39861 crore in Q3FY12
• The decline in EBITDA margin was mainly on account of a 190
bps QoQ increase in raw material cost to sales ratio. Even though
the employee cost to sales ratio and other expenses to sales ratio
have declined by 30 bps and 20 bps respectively, increase in raw
material cost to sales ratio has led to a decline in EBITDA margin.
The oil & gas sector has been the major drag on the aggregate
EBITDA margin as it reported a 376 bps decline on a QoQ basis
• Of the sectors, auto, capital goods, and IT recorded growth in
profitability both on a YoY and QoQ basis. The oil & gas sector’s
profitability has been lower on account of higher raw material cost
due to the sustained high price level for crude and impact of
rupee depreciation
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
http://content.icicidirect.com/mailimages/ICICIdirect_EarningsWrap_Q3FY12.pdf
E B I T D A m a r g i n c o n t r a c t i o n y e t a g a i n …
• The Q3FY12 aggregate revenues of Sensex companies rose by
7% in continuation with last quarters’ trend. However, the EBITDA
margin has continued its slide for the fourth consecutive quarter.
On a QoQ basis, the EBITDA margin declined by 140 bps to
18.4%. This led to flattish EBITDA in spite of revenue growth.
Though the interest expense has remained flattish, interest
expenditure as a percentage of EBITDA at 7.5% is at its highest
level in the last eight quarters. A 57% QoQ increase in other
income has enabled the aggregate net profit to report a QoQ rise
of 4% to | 39861 crore in Q3FY12
• The decline in EBITDA margin was mainly on account of a 190
bps QoQ increase in raw material cost to sales ratio. Even though
the employee cost to sales ratio and other expenses to sales ratio
have declined by 30 bps and 20 bps respectively, increase in raw
material cost to sales ratio has led to a decline in EBITDA margin.
The oil & gas sector has been the major drag on the aggregate
EBITDA margin as it reported a 376 bps decline on a QoQ basis
• Of the sectors, auto, capital goods, and IT recorded growth in
profitability both on a YoY and QoQ basis. The oil & gas sector’s
profitability has been lower on account of higher raw material cost
due to the sustained high price level for crude and impact of
rupee depreciation
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